Nvidia has been facing some tough questions these last few weeks. The eagerly anticipated GeForce RTX 20 Series was finally announced but Nvidia chose to focus on the ray-tracing capabilities rather than the like-for-like leap in performance over Pascal. Then the reviews hit and the reception was mixed, talking up some fantastic performance while criticising Nvidia’s over-indulgent pricing. And now, this week, the Nvidia GeForce RTX 2080 Ti and GeForce RTX 2080 are finding their way into gamers’ hands.
However, this turbulent period has seen Nvidia’s share prices take a tumble. Disappointment in the value for money offered by the GeForce RTX 20 Series has seen the value of Nvidia’s shares drop by over 5% in the last five days alone.
Nvidia’s share value hit an all-time high of $283.7 off the back of the GeForce RTX reveal, but subsequent reviews and benchmarks have seen this drop back down to $263.45.
"As review embargos broke for the new gaming products, performance improvements in older games is not the leap we had initially hoped for," said Morgan Stanley analyst Joseph Moore in a message to investors. "Performance boost on older games that do not incorporate advanced features is somewhat below our initial expectations, and review recommendations are mixed given higher price points."
In particular, it's the GeForce RTX 2080 that has come under the most fire/ Various benchmarks put it within a few percentage points of the previous-gen GeForce GTX 1080 Ti, despite costing upwards of $100 more.
"We are surprised that the 2080 is only slightly better than the 1080ti, which has been available for over a year and is slightly less expensive," continued Moore. "With higher clock speeds, higher core count, and 40% higher memory bandwidth, we had expected a bigger boost."
The GeForce RTX 2080 Ti is arguably the far more impressive card, despite its prohibitive cost, but it's also aimed at a fairly niche market. If Nvidia cannot provide substantive reasons for current GeForce 10 Series owners to upgrade, particularly at the mid and low-end, then this generation of GPUs could perhaps disappoint for Nvidia.
In the grand scheme of things though, this is no disaster for Nvidia. The current share value of $263 is still markedly higher than the valuation of $171 at this point last year. There is the possibility this could be the end of Nvidia’s meteoric rise though, with shares worth just $15 five years ago. While that wouldn’t overly please investors, Nvidia’s valuation has to cap out somewhere.